If you got it somebody else wants it. One of your best defenses against loss is an ‘Asset Protection Plan’. One of the ways to protect yourself and your assets is to have liability insurance. Rates are a reasonable $200 – $300 per 1 million in coverage per year. To cover a $5 million policy will set you back about $1,500 a year. Just inherited a million dollars? Get enough coverage to protect your new net worth. Many of us with a home, vehicles and furnishings are not aware that we approach a million dollars net worth. Two cars about $45,000 to $50,000 total for even economy models, homes valued at $350,000 and personal property at about $50,000 – $100,000 and we find ourselves with net worth passing a half-million dollars, for most middle age earners. Just to be safe consider an umbrella policy of a $1 million should be considered.
Separate Bank Accounts
Many find divorce a surprise. Children from a previous marriage may find their inheritance diluted by co mingling funds. Put your windfall into a separated account. Another facet of joint accounts is individual liability. A tax lien, lawsuit judgment can wipe out an entire account. Individual accounts with maybe a joint account to run the home or divide the bills between family members.
Transfer Property to LLC or Corporation
Own multiple properties, managed under a sole proprietorship you may want to reorganize and place your properties into a LLC or corporation, shielding your personal assets from disgruntled renters. In Nevada you can organize a series LLC that protects each individual property under a single entity. Have a small business organized as a partnership, like joint accounts you may find your assets at risk due to the actions of your partner(s) placing all of your personal and business assets at risk. Organize a formal business entity, either corporate or LLC. Sole proprietorship as mentioned earlier places your entire estate at risk if sued. Formal business organizations were created for a purpose.
Goals & Strategies of Protecting Assets
The whole goal is to take legal steps to bar the attractiveness of your personal assets and the steps necessary to deprive you of them. Asset protection comes down to balance, sometime delicate, of your control and access versus a sufficient lack of control recognized by the courts to your loss. An asset protection comes with its own attendant myths, misconceptions and misunderstandings. First asset protection requires consideration regardless of your net worth, it isn’t for the only the ultra rich, it can protect your assets regardless of income or assets you may have. Another misconception is that your control of your property, real or personal is jeopardized. It would not be appropriate to lose control over assets and not be able to enjoy them in an attempt to preserve them, it’s not realistic. Asset protection will neither provide tax advantages nor initiate an IRS audit. Properly formed the IRS recognizes a properly implemented protection for what it is. Not a lawsuit target, not really we all are subject to spurious suits and possible judgments and corporate or a Family Limited Partnership will provide insufficient protection against an aggressive, knowledgeable and determined opponent.
Criminal Defense, Personal Injury, Business Attorneys & More in Greater Las Vegas, Nevada
Frivolous or meritless lawsuits can be avoided with legally organized asset protection plan. But it is better to be proactive; initiating a protection after litigation has been triggered offers less successful protection than a plan set up before the court action. So consider action sooner than later, initiate an asset protection plan and organize your assets before the axe falls, it may save your neck. Contact Kajioka & Associates, Attorneys at Law to schedule a consultation today!